Investing.com – The euro reversed early losses against the pound on Tuesday, rebounding from a three day low, on buying by sovereign funds and after a report showing that German investor confidence jumped to a six-month high in January.
EUR/GBP clawed back up from 0.8332, the pair’s lowest since last Thursday, to hit 0.8374 during European afternoon trade, gaining 0.08%.
The pair was likely to find support at 0.8312, Thursday’s low and resistance at 0.8434, Monday’s high.
The ZEW Centre for Economic Research said its index of German economic sentiment rose to 15.4 points in January from 4.3 points in December, well above forecasts for an increase to 6.3.
The ZEW’s measure of the current economic situation rose to 82.8, the highest since July 2007, from 82.6 in December.
The single currency was also supported after Russia's Finance Minister Alexei Kudrin said earlier that his country was supportive of the euro zone's efforts to manage the sovereign debt crisis and may buy new bonds from its European Financial Stability Facility.
The euro was also higher against the U.S. dollar, with EUR/USD advancing 0.72% to hit 1.3389.
Earlier in the day, the single currency slumped against the pound after the U.K. Office for National Statistics said the annual rate of consumer price inflation rose to 3.7% in December from 3.3% the previous month, much higher than forecasts for a steady reading.
EUR/GBP clawed back up from 0.8332, the pair’s lowest since last Thursday, to hit 0.8374 during European afternoon trade, gaining 0.08%.
The pair was likely to find support at 0.8312, Thursday’s low and resistance at 0.8434, Monday’s high.
The ZEW Centre for Economic Research said its index of German economic sentiment rose to 15.4 points in January from 4.3 points in December, well above forecasts for an increase to 6.3.
The ZEW’s measure of the current economic situation rose to 82.8, the highest since July 2007, from 82.6 in December.
The single currency was also supported after Russia's Finance Minister Alexei Kudrin said earlier that his country was supportive of the euro zone's efforts to manage the sovereign debt crisis and may buy new bonds from its European Financial Stability Facility.
The euro was also higher against the U.S. dollar, with EUR/USD advancing 0.72% to hit 1.3389.
Earlier in the day, the single currency slumped against the pound after the U.K. Office for National Statistics said the annual rate of consumer price inflation rose to 3.7% in December from 3.3% the previous month, much higher than forecasts for a steady reading.